You'll probably get a similar message stating that the server will not forward emails for your address. This is the default configuration for sendmail where it will not allow 'just anyone' to use the server as this would potentially enable 'spammers' to abuse the sendmail server.

In order to enable to to send emails from a domain thaat is not the same as the sendmail server domain, you need to edit the /etc/mail/access file and add:

the server your sendmail connected to does not allow that your sendmail delivers mail to it.
You either have not send a proper HELO command, or your domain is blacklisted. Check with telnet as pjedmond suggested

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